“Carefully To Carry”

1. “Carefully To Carry” A compilation of reports from the Association’s Advisory Committee On Cargo Claims

2. Is Cargo Carriage Important ? • It is the shipowners raison d’etre • Damage = Loss of reputation = Increases costs of administration Handling problem Handling claim Handling irate customers = Increases insurance premiums = Increases loss of profit

3. Has Cargo Carriage Changed ? • Cargoes more sophisticated requiring more care • End buyers more discerning • Speed and time of delivery more important than speed of paying claim • Cargo protection • Profit margins a lot tighter

4. Damage in many trades is now just not acceptable

5. Even though damage not acceptable The P&I Industry still pays out on cargo claims in the region 370$m a year 31$m a month 8$m a week Over 1$m day !!

6. Owners ignore cargo damage at their peril

7. How Important is Cargo Carriage to the Insurer

8. Number of Large Liability Claims By Risk Type 1987 - 2001

9. Value of Large Liability Claims By Risk Type 1987 - 2001

10. As you can see Cargo is very much a P&I Club’s Raison d’etre as well

11. What type of cargo gets damaged

12. Main Cargoes Damaged1987 - 2001 13$m 41$m 13$m 18$m 57$m 28$m 30$m 55$m 65$m 79$m 110$m 82$m

13. What type of Damage %

14. Most frequent Cause of Large Cargo Claims Number Claims Claims Paid ($m) Bad Stowage 283 75.76 Hatchcover Leakage 236 57.38 Could better knowledge reduce this 218$m outgoing Bad Handling 189 33.2 Condensation 107 20.68 Damage Prior Loading 83 20.44 Lashing Failure 80 17.85 Inadequate tank/hold Clean 79 23.2 Pre Shipment Quality 78 16.83 Fire 68 58.5 Valve Pipe Fail 62 12.29 Grounding 50 32.07 Fraud 49 9.79 Carried Wrong Temp 49 10.07 Shell Plate Fail 44 34.98 Shore Terminal 41 11.05 Ship Machinery Fail 39 14.33 Sank 38 26.86 Pipe Fail 36 6.99 Collison 29 8.41 Leaking DB'S 28 4.9 Misdelivery 27 3.88 E;ectrical 21 2.74 ME Fail 20 8.93 Poor Tally/Paperwork 18 3.29 Inadequate tank/hold coating 17 5.24 Blocked Bilges 14 2.53 Bulkhead Fail 13 5.59 Poor packing 11 1.32 Leaking Vents 11 9.3 Ship Unsuitable 10 1.9

15. The Club thinks so

16. Today we are re launching Carefully to Carry The UK Club handles around 7,000 cargo claims a year The UK Club is in a unique position to source information on what goes wrong The UK Club has the facility with its analysis tools to focus The UK Club has the expertise available in the form of an Advisory Committee of experts The UK Club can offer a source of practical, well founded and up to date advice With this advice hopefully we can help Members reduce their exposure to cargo damage

17. The publication originates from the Carefully to Carry Committee

18. Carefully To Carry • Carefully to Carry Committee • Formed 1961 • Body of Expertise • Commodities • Chemicals • Steel • Oil • Container Carriage • Minerals • Claims Handling • Court tested experience • Articles on Current problems • 15 Issues (Last 1999) • Written by independent experts • Scrutinized by peers

19. New Publication • 41 Years of articles brought up to date • One easy to use publication • Available for Insurance Managers • Available for ship board use • Trade Focused • Bulk Cargoes - Solid • Bulk Cargoes - Liquid • Containers • Refrigerated Cargoes • Miscellaneous • Under Development • Electronic format • CD • Web based

20. Measurement of bulk cargoes Shortage Claims Karnal Bunt Trade Restrictions Direct reduced iron Regular heating problems-39 million tonnes produced a year Oil samples and sampling Regular requests for how Calcium hypochlorite 1970’s problem then 1990’s Radioactive cargoes Coal Fire Carriage instructions for reefer cargoes More sophisticated carriage, less sophisticated advice from shippers Fishmeal cargoes Fire Coffee Condensation Refined sugar Caking Timber deck cargoes Loss overboard still regular occurrence Moisture migration Mould Topics Covered

21. The publication will be a store of knowledge which can be drawn down upon by Members.Which will assist in the reduction of damage THEREBY REDUCING

22. Is Cargo Carriage Important ? • It is the shipowners raison d’etre • Damage = Loss of reputation = Increases costs of administration Handling problem Handling claim Handling irate customers = Increases insurance premiums = Increases loss of profit

23. “Carefully To Carry” A compilation of reports from the Association’s Advisory Committee On Cargo Claims